According to the latest report, asset management firm Grayscale has been transferring large amounts of Bitcoin to various wallet addresses over the past month. This data revelation comes days after the asset manager’s application to convert its Bitcoin trust to a spot exchange-traded fund (ETF) was approved by the United States Securities and Exchange Commission (SEC).
It is believed that the Grayscale Bitcoin Trust is one of the largest Bitcoin entities in the world. In September 2023, crypto analytics platform Arkham Intelligence discovered the asset manager’s multi-billion dollar BTC holdings across more than 1,750 wallet addresses.
How Much Did Grayscale Send To Coinbase?
CryptoQuant’s founder Ki Young Ju revealed – via a post on the X platform – that Grayscale has moved about 21,400 BTC to different wallet addresses in the last 30 days. The CEO also highlighted that some of the funds were sent to Coinbase, the largest centralized exchange in the United States.
— Ki Young Ju (@ki_young_ju) January 13, 2024
Specifically, the recent conversion of the Grayscale Bitcoin Trust to a spot BTC ETF has put some spotlight on the firm’s funds movement in recent days. This is because the shares of GBTC are now redeemable for Bitcoin following the ETF approval on January 10.
However, Arkham Intelligence data on Friday, January 12, a day after the spot Bitcoin ETFs began trading in the US, revealed that Grayscale’s Bitcoin trust sent 894 BTC (about $41 million) to Coinbase in a single transaction. This amount sent to the exchange represents about 0.15% of GBTC’s total holdings.
Arkham’s data shows that an additional $119 million in BTC was sent to other addresses on January 12. Interestingly, these funds outflows from Grayscale Bitcoin Trust are believed to have caused the sudden downturn in the price of BTC on Friday.
Popular crypto trader Ran Neuner agreed with this belief, saying that the Bitcoin price is “dumping” as investors are selling their GBTC shares. Neuner said in his post on X:
GBTC held $25bn+ worth of Bitcoin that has been locked up for years with no option to be sold. As soon as the redemption option opened, for the first time people are starting to exit – as they exit the Bitcoin must be sold on the market.
Bitcoin Price is dumping as people are dumping their GBTC shares.
GBTC held $25bn+ worth of Bitcoin that has been locked up for years with no option to be sold. As soon as the redemption option opened, for the first time people are starting to exit – as they exit the Bitcoin… pic.twitter.com/EqHgpHyVdd
— Ran Neuner (@cryptomanran) January 12, 2024
Bitcoin Price Overview
As of this writing, the price of Bitcoin stands at $42,805, reflecting a 7% decline in the past 24 hours. The premier cryptocurrency has reversed most of its gains in the past week after initially falling to below $42,000 on Friday.
According to CoinGecko data, Bitcoin’s price is down by about 2.5% in the last seven days. Nevertheless, BTC maintains its position as the largest cryptocurrency in the sector, with a market cap of $838 billion.